Shame on (You)nigram! In your recent coverage of Novell’s letter of intent to purchase Unix System Laboratories you’ve really missed the mark. Like so many others in the Unix community I look forward to reading Unigram.X every week. But in the Novell-Unix Labs transaction there are myriad specific details being worked through in a definitive agreement that would simply be inappropriate to discuss publicly. This process will not likely be completed until March. At that time there will be a number of things we will disclose to clarify how Unix Labs will be structured to assure the continuation of a business model that provides vendor-neutrality and equal access to the Unix Operating System, as well as other technologies. Analyst Harley Hahn has fabricated some ominous scenarios suggesting the demise of the open systems philosophy and business model that are the cornerstone of the Unix System. He said, What’s good for NetWare may not be good for Unix….(and) Novell has no compelling reason to keep paying for the fuel that burns in the Unix flame.
Conjures
He quoted me in the same paragraph, but somehow omitted some key words about the commitment of both Novell and Unix Labs to preserving the business model by which Unix Labs serves its licensees. He conjures up visions of conflict of interest saying …somewhere down the road the interests of Novell will not coincide with the Unix world at large. It is unrealistic to expect Novell to spend money to develop Unix for the good of everybody at the expense of their own company. It appears that Harley has a special mirror enabling him to see clearly into the future. He apparently sees Novell as the Grinch who will steal open systems. I suggest that the mirror has severe distortions, and perhaps Harley is seeing things grossly out of proportion. In a paragraph entitled New Opportunities, Harley warns, The many Unix value-added resellers and resellers should probably be more concerned with the loss of a stable, independent source for Unix than an imaginary NT monster (and) it would be prudent for those Unix vendors who have not already made the switch to take a strong look at the Open Software Foundation.
In CI No 2,083 we ran Harley Hahn’s analysis of what he saw as the likely developments that would follow the proposed acquisition by Novell Inc of Unix System Laboratories Inc, reprinted from our sister paper Unigram.X: here Larry Lytle, director of corporate communications at Unix Labs, exercises his right of reply.
Again, Harley is so convinced of his predicted outcome that he feels compelled to chase value-added resellers away, as well. Fortunately for us all, most value-added resellers are sharp enough to make independent business decisions. Those value-added resellers and independent software vendors I have talked to view the combination of Unix Labs and Novell as a very positive move that allows them to more effectively address the total enterprise. If this is true, then their marketplace is about to get a lot bigger. Harley would have them jump ship just as it’s pulling into the dock. And finally, Harley paints Unix Labs as a financial troubled operation saying, The financial results for Unix Labs seem to indicate that supplying System V to the world is not a good way to make money. If so, there is no reason to expect Novell to keep subsidising Unix out of altruism. The fact is, Unix Labs’s total revenues for 1992 were about $90m and we even made a bit of a profit. Hey Harley, we’re actually quite proud of what Unix Labs has achieved in less than two years as a privately-held company. Unix Labs has been courted by other attractive suitors, and has been on track to an initial public offering. Either alternative would have worked, but we believe that aligning with Novell in the proposed merger is the best way to go. It is the perfect combination of complementary technologies, business philosophies, and inherent abilities to meet customer needs. You’re right Harley, there is nothing altruistic in the motivations of either Novell or Unix Labs. We have this insatia
ble drive to be successful in the markets we serve. We are convinced that those people you mention who depend on Unix (and NetWare) for their living will find this to be a very satisfying and profitable combination.
Negative
Many of the issues you raise are important, and are being addressed. My immediate concern is that the tone of your coverage was very negative, speculative, and highly opinionated. If the intent was to provide a lengthy editorial and a persuasive argument for abandoning the Unix System, it was a credible effort. If the intent was to present objective journalistic coverage of an important event, with some semblance of balance and perspective, the mark was badly missed. While we cannot provide the details you might want at this time, I’d encourage you to give us the benefit of the doubt. I predict you’ll find that we are not insensitive to the needs of our licensees, or to the culture that made open systems reality; neither Roel Pieper nor Ray Noorda are Grinches; and the Unix System, as a result of this merger, will be stronger than ever.
